REVOCABLE LIVING TRUST AGREEMENT

(Michigan – Revocable, Inter Vivos)

TABLE OF CONTENTS

I. Document Header – Title, Parties, Recitals, Effective Date............1
II. Definitions..........................................................3
III. Operative Provisions.................................................5
IV. Representations & Warranties........................................11
V. Covenants & Restrictions............................................12
VI. Default & Remedies..................................................14
VII. Risk Allocation.....................................................15
VIII. Dispute Resolution.................................................16
IX. General Provisions..................................................18
X. Execution Block.....................................................20

Exhibit A – Schedule of Trust Assets
Exhibit B – Assignment of Tangible Personal Property

I. DOCUMENT HEADER

1.1 Title and Parties

This Revocable Living Trust Agreement (this “Trust Agreement” or “Trust”) is entered into and made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

• [SETTLOR LEGAL NAME], Social Security No. -*-[LAST 4], residing at [ADDRESS] (“Settlor”); and
• [INITIAL TRUSTEE NAME], residing at [ADDRESS]** (“Initial Trustee”).

Settlor and Trustee are collectively the “Parties.”

1.2 Recitals

A. Settlor desires to establish a revocable trust pursuant to Mich. Comp. Laws § 700.7602 and applicable provisions of the Michigan Trust Code, Mich. Comp. Laws § 700.7101 et seq., to hold, manage, and distribute property for Settlor’s benefit during life and for the benefit of the persons named herein after Settlor’s death.
B. Trustee is willing to accept the trusteeship and administer the Trust Estate under the terms of this Trust Agreement.
C. Settlor is transferring to the Trust the property described in Exhibit A and may transfer additional property from time to time (collectively, the “Trust Estate”).

1.3 Consideration

The mutual covenants contained herein and the actual transfer of property to the Trustee constitute good and sufficient consideration for this Trust Agreement.

1.4 Governing Law

This Trust Agreement shall be governed by and construed in accordance with the laws of the State of Michigan (the “Governing Law”).

II. DEFINITIONS

For ease of reference, the following capitalized terms have the meanings set forth below. Defined terms apply equally to the singular and plural forms.

“Accounting Period” – The twelve-month fiscal period ending each [MONTH & DAY], or such shorter period as may result from termination of the Trust or a change in the accounting year.

“Beneficiary” – Any person or entity identified in Section 3.5 as entitled to receive distributions of income or principal, including remainder and contingent beneficiaries.

“Disability” / “Incapacity” – A determination that Settlor lacks the ability to manage property or financial affairs, evidenced by: (a) a written certification signed by two licensed physicians, or (b) an order of a court of competent jurisdiction.

“Initial Trustee” – The individual or corporate trustee first named in Section 1.1.

“Successor Trustee” – Any person or entity serving as trustee after the resignation, removal, incapacity, or death of the prior Trustee, as designated in Section 3.7.

“Trust” or “Trust Estate” – All property, tangible or intangible, real or personal, now or hereafter held by the Trustee under this Trust Agreement, including all investments, reinvestments, proceeds, and substitutions thereof.

“Trustee” – The person or entity acting as trustee of the Trust Estate at any given time, including any Co-Trustee or Successor Trustee.

[// GUIDANCE: Add further defined terms here if additional specialized assets (e.g., closely-held entities, digital assets, retirement accounts) will be transferred into the Trust.]

III. OPERATIVE PROVISIONS

3.1 Creation and Funding

(a) Creation. Settlor hereby creates the “[SETTLOR NAME] Revocable Living Trust” effective as of the Effective Date.
(b) Initial Funding. Concurrently with execution, Settlor transfers, assigns, and delivers to the Trustee the property described in Exhibit A.
(c) Subsequent Funding. Additional property may be added by Settlor or others at any time by written assignment, deed, beneficiary designation, or other instrument of transfer.

[// GUIDANCE: Attach a “pour-over” will directing probate assets to this Trust to complete the estate plan.]

3.2 Revocation and Amendment

(a) Revocability. During Settlor’s lifetime and capacity, Settlor may revoke or amend this Trust, in whole or in part, by a written instrument delivered to the Trustee. See Mich. Comp. Laws § 700.7602.
(b) Partial Revocation. Any revocation that does not expressly revoke the entire Trust shall be construed as amending only those provisions inconsistent with the revocatory instrument.
(c) Recording Not Required. No revocation or amendment need be recorded unless it affects real property requiring record notice.

3.3 Lifetime Administration

(a) Distribution of Income and Principal. During Settlor’s lifetime and capacity, Trustee shall distribute to or for Settlor’s benefit as much of the net income and principal as Settlor may request, or as Trustee deems advisable for Settlor’s health, education, maintenance, and support (“HEMS”).
(b) Investment Authority. Trustee shall invest and reinvest the Trust Estate in any prudent investment permitted under Mich. Comp. Laws § 700.1501 et seq.

3.4 Administration Upon Incapacity

(a) Certification. Upon receipt of written certification of Settlor’s Incapacity, Trustee shall administer the Trust for Settlor’s benefit under the HEMS standard without the need for Settlor’s direction.
(b) Restoration of Capacity. Upon written certification of Settlor’s regained capacity, rights of revocation and amendment shall automatically resume.

3.5 Distribution on Settlor’s Death

Upon Settlor’s death, Trustee shall:
1. Pay Settlor’s legally enforceable debts, funeral, and administration expenses.
2. Allocate and distribute remaining Trust Estate as follows:
(i) [SPECIFIC GIFT #1] – [DESCRIPTION] to [BENEFICIARY].
(ii) [SPECIFIC GIFT #2] – [DESCRIPTION] to [BENEFICIARY].
3. Residue. The balance of the Trust Estate (the “Residue”) shall be distributed [in equal shares to Settlor’s descendants per stirpes / per capita / to named beneficiaries].

[// GUIDANCE: Insert tax-planning sub-trusts (e.g., marital, credit shelter) if needed. Michigan no longer has state estate tax, but federal exemption planning may still apply.]

3.6 Trustee Powers

In addition to powers granted by law, Trustee may exercise, without court order, all powers set forth in Mich. Comp. Laws § 700.7816, including but not limited to:
(a) Buy, sell, lease, exchange, or option any Trust asset.
(b) Borrow funds and encumber Trust assets.
(c) Vote securities, participate in reorganizations, and exercise shareholder rights.
(d) Employ and compensate professionals.
(e) Distribute in cash or in kind, pro rata or non-pro rata.
(f) Merge, divide, or terminate trusts when permitted by law and Section 3.11 herein.

3.7 Trustee Succession

(a) Order of Succession. Upon the Initial Trustee’s inability or unwillingness to serve, the following shall serve, in the order named, as Successor Trustee:
1. [SUCCESSOR TRUSTEE #1];
2. [SUCCESSOR TRUSTEE #2];
3. [CORPORATE TRUSTEE NAME].
(b) Acceptance. A Successor Trustee accepts office by written instrument delivered to the Settlor (if living) or to the beneficiaries and shall thereupon assume all duties, rights, and powers of Trustee hereunder.
(c) Resignation. A Trustee may resign by delivering at least thirty (30) days’ prior written notice to Settlor (if living) or, after Settlor’s death, to all adult income beneficiaries.
(d) Removal. Settlor (during capacity) or a majority of the adult income beneficiaries (after Settlor’s death) may remove a Trustee by written notice and appoint the next Successor Trustee.
(e) Vacancy. If no named Successor Trustee is willing or able to serve, a majority of adult income beneficiaries may appoint an independent corporate fiduciary authorized to act in Michigan.

3.8 Co-Trustees

If more than one Trustee is serving:
(a) Majority Rule. A majority may act for all.
(b) Compensation. Each Trustee is entitled to reasonable compensation.
(c) Limitation of Liability. A non-participating Trustee shall not be liable for the acts or omissions of another Trustee if the non-participating Trustee did not join in the action after exercising reasonable care.

3.9 Accounting & Reports

Trustee shall render at least annual written reports of the Trust’s receipts, disbursements, and assets to Settlor (if living) or to current beneficiaries. Failure to object to a report within one hundred twenty (120) days constitutes approval.

3.10 Asset Transfer Procedures

(a) Real Property. Settlor shall execute and record a quitclaim deed transferring Michigan real property to “[TRUST NAME], dated [EFFECTIVE DATE].”
(b) Bank & Brokerage Accounts. Accounts should be retitled to “[TRUSTEE NAME], Trustee, [TRUST NAME].”
(c) Motor Vehicles. Title transfers must comply with the Michigan Secretary of State requirements.
(d) Tangible Personal Property. Settlor assigns all household goods, collectibles, and personal effects to the Trust by the Assignment attached as Exhibit B.

[// GUIDANCE: Provide the client with detailed funding letters/instructions for each financial institution to avoid probate exposure.]

3.11 Trust Division, Combination, or Early Termination

Trustee may divide or combine trusts or terminate a trust of uneconomic size, consistent with Mich. Comp. Laws § 700.7414, provided the action does not frustrate the material purposes of the Trust and written notice is given to the qualified beneficiaries.

IV. REPRESENTATIONS & WARRANTIES

4.1 Settlor represents and warrants:
(a) Settlor is of legal age and has capacity to create this Trust.
(b) Assets transferred to the Trust are free of undisclosed liens or claims.

4.2 Trustee represents and warrants:
(a) Trustee is not disqualified under any applicable statute or court order from serving as fiduciary.
(b) Trustee will exercise the standard of care of a prudent person dealing with the property of another, consistent with Mich. Comp. Laws § 700.7803.

4.3 Survival. All representations and warranties survive acceptance of the Trust res and remain in force during administration.

V. COVENANTS & RESTRICTIONS

5.1 Affirmative Covenants of Trustee
(a) Administer the Trust solely in the interests of the beneficiaries.
(b) Keep adequate records and segregate Trust property from personal assets.
(c) Furnish required tax information to beneficiaries and file all Trust tax returns.

5.2 Negative Covenants of Trustee
(a) No self-dealing except as expressly authorized herein or by court order.
(b) No commingling of Trust assets with personal or other non-trust assets.

5.3 Notice & Cure
If a beneficiary alleges breach of trust, the beneficiary must give written notice specifying the breach and a thirty (30) day cure period before initiating court proceedings, unless irreparable harm is imminent.

VI. DEFAULT & REMEDIES

6.1 Events of Default
(a) Trustee’s failure to perform material fiduciary duties.
(b) Breach of any covenant, representation, or warranty that remains uncured after notice under Section 5.3.

6.2 Remedies
(a) Suspension, removal, or surcharge of Trustee.
(b) Appointment of a Special Fiduciary.
(c) Injunctive relief to prevent dissipation of Trust assets.
(d) Recovery of damages, including reasonable attorney fees and costs, from the Trust Estate or, in cases of intentional misconduct, from the Trustee personally.

VII. RISK ALLOCATION

7.1 Indemnification of Trustee
Trustee shall be indemnified and held harmless out of the Trust Estate from any liability, loss, or expense, including attorney fees, incurred by reason of the administration of the Trust, except for losses arising from Trustee’s intentional wrongdoing or gross negligence.

7.2 Limitation of Liability
No Trustee shall be personally liable for any obligation of the Trust. The liability of any Trustee is limited to the value of the Trust Estate under the Trustee’s control, except for intentional wrongdoing or gross negligence.

7.3 Insurance
Trustee may maintain liability insurance (including errors & omissions) payable from the Trust Estate.

7.4 Force Majeure
Trustee shall not be liable for failure to perform duties when such failure is due to events beyond Trustee’s reasonable control, including but not limited to acts of God, war, terrorism, pandemic, or changes in applicable law.

VIII. DISPUTE RESOLUTION

8.1 Governing Law
This Trust shall be governed by the laws of the State of Michigan without regard to conflict-of-laws principles.

8.2 Exclusive Forum
The Probate Court for the county in which the Trust has its principal place of administration (the “Probate Court”) shall have exclusive jurisdiction over all matters concerning the construction or administration of this Trust, unless the arbitration provisions of Section 8.3 are invoked.

8.3 Optional Arbitration
Any controversy arising under or relating to this Trust may, upon written agreement of all interested parties, be submitted to binding arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules. Venue shall be [COUNTY], Michigan. Judgment on any award may be entered in the Probate Court.

[// GUIDANCE: Delete Section 8.3 if arbitration is not desired. Michigan law permits but does not require arbitration of trust disputes.]

8.4 Jury Waiver
To the extent a matter is pending in the Probate Court, the Parties acknowledge that trust proceedings are typically equitable, and no right to trial by jury exists in such proceedings.

8.5 Injunctive Relief
Nothing herein shall limit a beneficiary’s or Trustee’s right to seek temporary, preliminary, or permanent injunctive relief from the Probate Court to enforce the terms of this Trust.

IX. GENERAL PROVISIONS

9.1 Amendment & Waiver
Except as expressly provided herein, no amendment or waiver of any provision shall be effective unless set forth in a written instrument executed by Settlor (during capacity) and delivered to the Trustee. No waiver of any breach constitutes a continuing waiver.

9.2 Assignment & Delegation
Beneficial interests are not assignable or transferable, voluntarily or involuntarily, except as permitted by law. Trustee may delegate investment functions in accordance with Mich. Comp. Laws § 700.7808.

9.3 Spendthrift Provision
To the maximum extent permitted by Michigan law, no interest of any beneficiary shall be subject to voluntary or involuntary transfer, assignment, anticipation, or seizure by legal process.

9.4 Successors & Assigns
This Trust Agreement is binding upon and inures to the benefit of the successors, assigns, and legal representatives of the Parties.

9.5 Severability
If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to effectuate the Settlor’s intent.

9.6 Entire Agreement
This Trust Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior written or oral agreements relating thereto.

9.7 Counterparts; Electronic Signatures
This Trust Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together constitute one instrument. Electronic or facsimile signatures shall be deemed originals for all purposes.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the Settlor and Trustee have executed this Revocable Living Trust Agreement as of the Effective Date.

ACKNOWLEDGMENT

State of Michigan, County of [COUNTY]

On this ___ day of ____, 20__, before me, the undersigned Notary Public, personally appeared [SETTLOR] and [TRUSTEE], personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein contained.

Notary Public: ____
My Commission Expires: ___
County of Acting: _______

EXHIBIT A – SCHEDULE OF TRUST ASSETS

1. Checking Account No. [XXXX] at [BANK], approximate balance $__.
2. Brokerage Account No. [XXXX] at [BROKERAGE], approximate balance $__.
3. Real Property located at [ADDRESS & LEGAL DESCRIPTION].
4. [ANY ADDITIONAL ASSETS].

[// GUIDANCE: Insert asset values for basis-step up records. Attach deeds, stock powers, or other transfer documents as applicable.]

EXHIBIT B – ASSIGNMENT OF TANGIBLE PERSONAL PROPERTY

For good and valuable consideration, receipt of which is hereby acknowledged, I, [SETTLOR NAME], hereby assign, transfer, and convey to [TRUSTEE NAME], Trustee of the [TRUST NAME], all of my right, title, and interest in and to all tangible personal property owned by me on the date hereof, wherever located, including without limitation household goods, furniture, furnishings, clothing, jewelry, and personal effects, to be held, administered, and distributed under the provisions of said Trust.

Dated: _____

Settlor: _________

Witness: _________

Witness: _________

Notary Acknowledgment (optional but recommended)

[// GUIDANCE:
1. ALWAYS complete funding of assets into the Trust; unfunded assets will require probate.
2. Consider executing a “Certification of Trust” per Mich. Comp. Laws § 700.7913 for presentation to financial institutions instead of the full Trust.
3. Coordinate beneficiary designations on life insurance and retirement accounts with your estate-planning tax advisor to avoid unintended tax consequences.
]